Alibaba will buy around USD 500 million worth of newly issued shares in Lazada, as well as acquire shares from some existing shareholders, cnbc.com reports.
Rocket Internet will sell a 9.1% stake in Lazada for USD 137 million in cash but will still have an 8.8% stake. Tesco will sell an 8.6% equity stake in Lazada for USD 129 million, bringing down its stake in the company to 8.3%. Tesco said that the proceeds from the deal will be used for general working capital.
The deal also continues Alibaba`s expansion beyond its home market. In 2015, the firm appointed country managers in the UK and Italy as it looked to increase its footprint in Europe and help businesses in the region sell into China. Behind its expansion plans is the idea that Alibaba can become a gateway to China for buyers and sellers on its platform.
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